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DEFINITIONS OF COVERAGE
Liability Insurance (what the state requires) is a series of numbers, ie, 15/30/10. These are limits in thousands of dollars that the company will pay the other parties if you are legally responsible for an accident. $15,000 per person or $30,000 each occurrence for bodily injury (BI) plus up to $10,000 for damage to their property (PD). You should make periodic adjustments to your limits to reflect limits equal to your net worth. Higher examples would be 25/50/25 or 50/100/50, etc.

Uninsured Motorist (UM) is the insurance that insures you and the people in your vehicle against bodily injury and property damage caused by an uninsured driver. The limits of liability are paid by your insurance company to you as if the uninsured driver had insurance. Uninsured drivers often have no assets. Payments are made for BI, PD, or your deductible.

Medical is often referred to as "extra" medical. This coverage can be purchased to pay additional medical payments to you and each person in your vehicle no matter who is legally responsible for the accident.

Comprehensive and Collision provide coverage for your car. Collision is when the car is in an accident. Comprehensive is for everything else. . .fire, vandalism, flood, earthquake, theft. The amount paid by the insurance company is subject to a deductible. Deductible is the amount the insured is responsible for. If your comprehensive deductible is $500.00, and your vehicle worth $10,000 is stolen, your insurance company would pay the value less your deductible or $9,500.